Stanley Black & Decker Posts Positive Q1 Results

The tool and mechanical locks maker says it expects low-single-digits organic growth for its security segment in 2017.

NEW BRITAIN, Conn. – Stanley Black & Decker (NASDAQ: SWK) on Friday (April 21) reported first-quarter profit of $393.1 million.

Earnings from continuing operations were $1.29 per share, beating the Zacks Consensus Estimate of $1.19 and slightly above the previous year’s mark of $1.28. The company posted net income of $2.59 per share.

The company’s net sales totaled $2.8 billion, outpacing the Zacks Consensus Estimate of $2.75 billion. Stanley Black & Decker expects full-year earnings in the range of $7.08 to $7.28 per share.

Stanley Black & Decker reports revenues under three market segments. Following are abridged descriptions of each segment’s performance for Q1 gathered from Zacks.

Tools & Storage:

The segment generated revenues of $1.85 million, an increase of 9% year-over-year, representing 66.1% of net revenue in the quarter. Organic revenues grew 6% while acquisitions had a positive 4% impact.


Revenues $472.6 million accounted for roughly 16.8% of net revenue, an increase of 3% year over year. The growth was triggered by volume gains of 5%, partially offset by 1% negative price impact and adverse currency impact of 1%.


The segment accounted for roughly 17.1% of net revenue, decreasing 5% year over year to $478.5 million. Favorable price impact of 1% and acquisition gain of 1% were more than offset by 1% negative impact of forex losses and 6% negative impact of divestitures.

During an earnings call with investors on Friday, Stanley Black & Decker EVP & CFO Don Allan said overall the security segment “delivered a solid quarter starting the year on the right foot from an organic growth perspective, at the same time executing seamlessly on the mechanical locks divestiture. Additionally, they had a strong orders trend in the quarter and therefore backlog is positioned well going into the second quarter.”

In North America, the security segment’s organic growth increased 2%, its highest organic growth quarter since the second quarter of 2015 led by higher volumes within automatic doors, which continues to perform very well as well as solid healthcare growth, according to the company.

Allan said the company is expecting low-single-digits organic growth for its security segment in 2017.

“Note that the margin rate for the segment will be down year-over-year as we begin the process of lapping comps inclusive of the Mechanical Locks business just divested this quarter,” he said. “Excluding that sale however, the margin rate for the year will be flat to slightly positive.”

Stanley Black & Decker shares have increased 16% since the beginning of the year, while the Standard & Poor’s 500 index has increased 5%. The stock has risen 23% in the last 12 months.

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About the Author


Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.

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